CO537-2188 — Page 462

(i) We share the Governor's concern lest there

should be any wasteful duplication of services in the administration of the Urban and Rural areas of the Colony which, at any rate

initially, are to be administered by different bodies.

(ii) The services which it is proposed to hand

over to the Municipal Council appear to cover most of the field in which welfare grants might be made under the C.D. & W. Act. We should perhaps make it clear now that the Colonial Government must continue to meet in full its responsibilities to H. M. Government in connexion with the administration of such grants.

(iii)

As the Governor suggests, we should certain- ly wish to vet any loan projects of the Municipal Council.

(iv) I have already referred above to the ques-

tion of Audit. We note the views in your telegram No. 329 that the appointment of commercial auditors would mark the indepen- dence of the Council from the Government, but our own view is that it would be desirable for the Colonial Audit Department to under- take this work, at any rate in the early stages of the Municipal Council's development. Should you find any difficulty in agreeing, I hope you will give us an early opportunity of discussing the point.

(v) As regards secondment of staff, we should

have to consider very carefully how far officers could be kept on the establishment of the Colony once the duties attached to their position had been permanently transferred to the Municipal Council.

Lintelsby

Yours sincerely,